Companhia Paranaense de Energia Pfd (ELP) AI Stock Analysis

• Market Cap: $7.15B
• Dividend Yield: 5.6%
• Average Volume (3M): 183.74K
• Price to Earnings (P/E): 13.4
• Beta (1Y): 0.33
• Revenue Growth: -5.28%
• EPS Growth: 14.50%
• Country: US
• Employees: 4,396
• Sector: Utilities
• Sector Strength: 65
• Industry: Diversified Utilities
• EPS (TTM): 0.14
• Shares Outstanding: 335,867,070
• 10 Day Avg. Volume: 224,129
• 30 Day Avg. Volume: 183,738
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.39
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 1.64
• Enterprise Value/Ebitda: 1.81
• 1Y Price Target: $10.40
• Price Target Upside: 4.31% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 74 Outperform
• Price Target: $11.00 ▲(10.33% Upside)

Companhia Paranaense de Energia Pfd's stock score is driven by strong technical indicators and a solid valuation, supported by a reasonable P/E ratio and attractive dividend yield. Financial performance is stable, though cash flow challenges need attention. The balanced sentiment from the earnings call, with strategic achievements and some financial pressures, also contributes to the overall score.

Positive Factors

Strategic Asset Divestments

Strategic divestments enhance portfolio efficiency and focus on core operations, potentially improving long-term profitability and resource allocation.

Recognition in ESG Practices

Recognition in ESG practices strengthens Copel's reputation and aligns with sustainable business trends, potentially attracting socially conscious investors.

Migration to Novo Mercado

Migration to Novo Mercado is expected to enhance governance and liquidity, improving market perception and potentially increasing investor confidence.

Negative Factors

Increased Financial Expenses

Rising financial expenses due to increased debt can strain profitability and limit financial flexibility, impacting long-term financial health.

Cash Flow Challenges

Decreasing free cash flow may hinder future investments and debt repayments, posing risks to long-term growth and operational stability.

Drop in Net Income

A decline in net income indicates potential profitability challenges, which could affect the company's ability to reinvest and grow sustainably.

Companhia Paranaense de Energia Pfd Business Overview & Revenue Model

Company Description

Companhia Paranaense de Energia Pfd (ELP) is a leading electric utility company based in Brazil, primarily focused on the generation, distribution, and transmission of electricity in the state of Paraná. The company operates in various sectors of the energy market, including hydroelectric power generation and renewable energy initiatives, providing essential services to residential, commercial, and industrial customers. ELP is committed to sustainability and energy efficiency, continually investing in modernizing its infrastructure and expanding its service capabilities.

How the Company Makes Money

Companhia Paranaense de Energia Pfd generates revenue primarily through the sale of electricity to its customer base in Paraná, which includes residential, commercial, and industrial sectors. The company earns money through regulated tariffs set by the government, which determine the price of electricity sold to consumers. Key revenue streams include the generation of hydroelectric power, which constitutes a significant portion of its energy supply, as well as revenues from transmission and distribution services. Additionally, ELP may engage in energy trading and enter into power purchase agreements that can enhance its income. Strategic partnerships with governmental and private entities to promote renewable energy projects also contribute to its earnings potential.

Companhia Paranaense de Energia Pfd Financial Statement Overview

Summary

Companhia Paranaense de Energia Pfd demonstrates solid revenue growth and improving profitability metrics. While leverage has increased, it remains within a reasonable range. Cash flow metrics indicate some challenges, particularly with free cash flow, which could impact future investments or debt repayments. Overall, the company is financially stable but should monitor cash flow closely.

Income Statement

The company has shown consistent revenue growth with a TTM growth rate of 3.23%. Gross profit margin has decreased over the years, indicating potential cost pressures. However, the net profit margin has improved slightly in the TTM, reflecting better cost management. EBIT and EBITDA margins are stable, suggesting operational efficiency.

Balance Sheet

The debt-to-equity ratio has increased slightly, indicating a rise in leverage, but remains manageable. Return on equity has improved in the TTM, showing better profitability. The equity ratio is stable, reflecting a balanced capital structure.

Cash Flow

Free cash flow has decreased in the TTM, which could be a concern for liquidity. The operating cash flow to net income ratio is stable, indicating consistent cash generation relative to earnings. However, the free cash flow to net income ratio is negative, suggesting potential cash flow challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	23.87B	22.65B	21.48B	20.54B	23.98B	18.63B
Gross Profit	6.05B	4.07B	4.90B	4.93B	4.27B	4.06B
EBITDA	5.50B	5.17B	3.96B	3.64B	5.64B	6.61B
Net Income	3.04B	2.81B	2.26B	1.11B	4.95B	3.90B
Balance Sheet
Total Assets	60.74B	57.38B	55.82B	49.70B	49.54B	46.78B
Cash, Cash Equivalents and Short-Term Investments	2.90B	4.16B	5.65B	2.68B	3.49B	3.22B
Total Debt	20.21B	17.57B	15.23B	12.73B	12.04B	10.08B
Total Liabilities	35.18B	31.75B	31.63B	28.57B	27.36B	26.53B
Stockholders Equity	25.60B	25.67B	23.89B	20.82B	21.84B	19.96B
Cash Flow
Free Cash Flow	3.09B	3.26B	3.30B	3.51B	3.04B	3.77B
Operating Cash Flow	3.25B	3.39B	3.52B	3.90B	3.39B	4.02B
Investing Cash Flow	-6.83B	-5.74B	-3.14B	-2.77B	31.91M	-1.67B
Financing Cash Flow	-868.91M	803.86M	2.70B	-1.92B	-2.88B	-1.79B

Companhia Paranaense de Energia Pfd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.97
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ELP, the sentiment is Positive. The current price of 9.97 is above the 20-day moving average (MA) of 9.50, above the 50-day MA of 9.32, and above the 200-day MA of 8.13, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.43 is Neutral, neither overbought nor oversold. The STOCH value of 95.17 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ELP.

Companhia Paranaense de Energia Pfd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CIG	75 Outperform	$6.23B	4.90	22.94%	13.28%	-3.27%	-3.44%
ELP	74 Outperform	$7.15B	13.43	9.81%	5.60%	-5.28%	14.50%
ELPC	72 Outperform	$6.98B	12.15	9.81%	5.69%	-5.28%	14.50%
BIP	69 Neutral	$22.62B	1,787.11	1.06%	4.95%	8.86%	―
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
AES	65 Neutral	$10.20B	10.11	21.17%	4.90%	-3.19%	30.48%
ALE	62 Neutral	$3.91B	21.28	6.46%	4.30%	-0.44%	-17.46%

Companhia Paranaense de Energia Pfd Corporate Events

COPEL Announces No Shareholder Withdrawals Following Share Preference Changes

On September 24, 2025, Companhia Paranaense de Energia (COPEL) announced that the deadline for dissenting shareholders to exercise their right of withdrawal had passed without any shareholders opting to withdraw. This follows the approval at the Extraordinary General Meeting on August 22, 2025, to equalize the preferences and advantages of class ‘B’ preferred shares with class ‘A’ preferred shares. The lack of dissent suggests shareholder support for the changes, which could impact the company’s financial structure and stakeholder relations.

COPEL Advances with Strategic Corporate Restructuring in August 2025

On August 22, 2025, Companhia Paranaense de Energia (COPEL) held its 212th Extraordinary General Meeting digitally, where significant decisions were made regarding its corporate structure and market positioning. The shareholders approved several key proposals, including the company’s entry into the Novo Mercado segment of the B3 stock market, amendments to the statutory rules for share conversion, and changes to the preferences of preferred shares. These decisions aim to enhance COPEL’s governance, align share classes, and improve its market competitiveness, potentially impacting its stakeholders positively.

COPEL Approves Migration to Novo Mercado, Offers Withdrawal Rights

On August 25, 2025, Companhia Paranaense de Energia (COPEL) held an Extraordinary General Meeting where shareholders approved the company’s migration to the Novo Mercado of B3 S.A., which included changes to the preferences of class ‘B’ preferred shares. This decision grants withdrawal rights to dissenting shareholders of ordinary shares, allowing them to be reimbursed for their shares if they disagree with the changes. The reimbursement is contingent on obtaining creditor waivers, and the exercise period for withdrawal rights is from August 26 to September 24, 2025.

Copel Shareholders Approve Migration to Novo Mercado

On August 22, 2025, Companhia Paranaense de Energia (Copel) held an Extraordinary General Meeting where shareholders approved the company’s migration to the Novo Mercado of B3 S.A. This move is part of Copel’s efforts to enhance its corporate governance practices. The approval includes measures such as obtaining creditor consent and calling a special meeting of preferred shareholders. This strategic shift is expected to strengthen Copel’s market positioning and provide greater transparency to its stakeholders.

Companhia Paranaense de Energia Schedules Digital Extraordinary General Meeting for August 22, 2025

Companhia Paranaense de Energia (Copel) has announced that its 212th Extraordinary General Meeting (EGM) will be held exclusively in digital format on August 22, 2025. This meeting was initially scheduled for August 4, 2025, but was postponed to allow for legal analysis of the proposals to be discussed. Shareholders are encouraged to participate and vote on relevant issues using a digital platform or a distance voting ballot. The meeting will include participation from the Executive Board and other key representatives, ensuring comprehensive discussions on the agenda items.

Copel to Hold Extraordinary General Meeting for Strategic Corporate Changes

On August 22, 2025, Companhia Paranaense de Energia (Copel) will hold an Extraordinary General Meeting exclusively in digital mode to discuss significant changes to its corporate structure and stock market positioning. The agenda includes seeking authorization to enter the Novo Mercado segment of B3, unifying share classes, and amending the company’s bylaws to improve governance and align with Novo Mercado regulations. These changes aim to enhance Copel’s market presence and shareholder value, although they are contingent on obtaining necessary approvals and waivers.

COPEL Resumes Extraordinary General Meeting for Novo Mercado Migration

On August 15, 2025, Companhia Paranaense de Energia (COPEL) received authorization from the CVM Board to resume its Extraordinary General Meeting (EGM), initially scheduled for August 4, 2025. The meeting is now set for August 22, 2025, to discuss the company’s migration to B³’s Novo Mercado. COPEL emphasizes the validity of previously submitted voting instructions unless shareholders choose to change them. This move reflects COPEL’s commitment to transparency and adherence to corporate governance standards, aiming to keep stakeholders informed.

COPEL Files Report with Forward-Looking Statements

On August 11, 2025, Companhia Paranaense de Energia (COPEL) filed a report under the Securities Exchange Act of 1934, signed by CEO Daniel Pimentel Slaviero. The report includes forward-looking statements reflecting management’s current views on future economic circumstances, industry conditions, and company performance, highlighting potential risks and uncertainties that could impact financial results.

Copel Reports Strong Q2 2025 Financial Results

In the second quarter of 2025, Copel reported a 4.2% increase in recurring EBITDA compared to the same period in 2024, reaching R$ 1,335.0 million. This growth was driven by strong performances in its generation and commercialization segments, with GenCo’s EBITDA growing by 12.6% and Elejor’s by 98.0%. However, the company faced challenges such as a decrease in TradeCo’s EBITDA due to lower sales margins. Additionally, Copel’s net operating revenue increased by 13.6% year-over-year, totaling R$ 6,225.2 million, largely due to a significant rise in electricity supply revenue.

COPEL Files Compliance Report with SEC

On August 7, 2025, Companhia Paranaense de Energia (COPEL) filed a report under the Securities Exchange Act of 1934, signed by CEO Daniel Pimentel Slaviero. The filing is part of the company’s compliance with regulatory requirements, reflecting its ongoing commitment to transparency and adherence to financial regulations.

Companhia Paranaense de Energia Submits Routine SEC Filing for July 2025

Companhia Paranaense de Energia has submitted a Form 6-K report for July 2025 to the Securities and Exchange Commission. This filing is a routine disclosure for foreign private issuers, ensuring compliance with U.S. regulations. The report does not indicate any significant changes or events impacting the company’s operations or market position.

COPEL Submits July 2025 Report with Forward-Looking Statements

On July 18, 2025, Companhia Paranaense de Energia (COPEL) submitted a report under the Securities Exchange Act of 1934, signed by CEO Daniel Pimentel Slaviero. The report includes forward-looking statements reflecting management’s current views on future economic circumstances, industry conditions, and company performance. These statements are subject to risks and uncertainties, and actual results may differ from expectations.

COPEL Reports Q2 2025 Grid Market Decline Amid Milder Weather

In the second quarter of 2025, COPEL reported a 0.7% decline in electricity consumption in its distribution grid market compared to the same period last year, primarily due to milder weather affecting residential and commercial demand. However, the industrial segment showed resilience, partially offsetting the reduction. Despite this quarterly decline, the year-to-date growth remains positive at 1.3%, reflecting the company’s stable performance amidst varying market conditions.